lululemon athletica inc. stock research
FY2023 Q4
lululemon athletica (LULU) Gross Margin — Quarter Ended Jan 28, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved as revenue grew at a faster pace than cost of revenue.
Gross margin takeaway
Quarter ended Jan 28, 2024 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved as revenue grew at a faster pace than cost of revenue.
- The primary driver of the gross margin improvement was the higher rate of revenue growth relative to the increase in cost of revenue.
- Sequentially, gross margin strengthened from the previous quarter. Year-over-year, gross margin also improved compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.4%
Gross profit
$1.9B
Revenue
$3.2B
Cost of revenue
$1.3B
Quarter-over-quarter change
+2.4 pts
Year-over-year change
+4.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 30, 2023 | $2.0B | $1.2B | $850.0M | 57.5% |
| Jul 30, 2023 | $2.2B | $1.3B | $910.7M | 58.8% |
| Oct 29, 2023 | $2.2B | $1.3B | $947.6M | 57.0% |
| Jan 28, 2024 | $3.2B | $1.9B | $1.3B | 59.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 29, 2023
+2.4 pts
Year-over-year change
Jan 29, 2023
+4.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin improvement was the higher rate of revenue growth relative to the increase in cost of revenue.
Sequentially, gross margin strengthened from the previous quarter. Year-over-year, gross margin also improved compared to the same quarter one year earlier.
Monitor whether the favorable relationship between revenue growth and cost of revenue growth persists in future quarters.